Research On The Impact Of Entity Enterprise Financialization On Enterprise Value Creation

Since the 2008 financial crisis,the scale of China’s financial industry has expanded and its output value has accumulated rapidly.At the moment of structural slowdown in economic growth,the increasing trend of financialization will squeeze the development space of real economy,which is not conducive to the sustainable and healthy development of economy in the long run.The report of the 19 th CPC National Congress pointed out that the real economy is the foundation of a country’s economy.How to revitalize the real economy and restrain enterprises from turning from "real" to "virtual" has become an urgent problem to be solved.The essence of financialization is a financial asset investment strategy.Why do enterprises invest in financial assets?What are the economic consequences of financial asset investment? Is there a range effect? How can enterprises control the degree of financialization so that it can better serve the development of enterprises? Solving these problems will help the government improve the level of the real economy,better play the role of financial services entities,help enterprises control the level of financialization,and enhance the value of enterprises.This thesis takes Shanghai and Shenzhen A-share entity listed companies as research samples to explore the motivation of corporate financialization,its impact on corporate value creation and its mechanism.The research content includes the following five parts: The first part is theoretical research.This thesis defines the concepts of entity enterprise financialization and enterprise value creation and introduces relevant theories.Second is the status quo analysis.This thesis analyzes the status quo of the financialization of the entity enterprises in China from three aspects:the degree of the financialization of the entity enterprises,the proportion of financial assets allocation,and the existing problems and countermeasures.The third part is the research design.Through theoretical deduction,the relationship hypothesis is proposed and the research variables are determined,and the research model is constructed according to the research hypothesis.The fourth part is the empirical analysis of the financialization of entity enterprises to enterprise value creation.This thesis uses panel regression model and threshold regression model to test the relationship between the two and the interval effect,uses the local adjustment model to measure the optimal value of financialization,compares the theoretical value with the actual level and further groups,and discusses the governance of the negative impact of enterprise internal governance level and external market competition on excessive financialization.The fifth part is the research conclusion of this thesis,which is as follows :(1)there are two motives of "reservoir" and "speculation and arbitrage" in corporate financial asset investment,and the economic consequences of corporate financialization under different motives are different,which is embodied in an inverted u-shaped conic relationship.When the level of financialization is low,enterprises show "reservoir" motivation.With the increasing degree of financialization,financialization motivation gradually turns to "speculation and arbitrage",and its influence on enterprise value creation also turns from positive to negative.(2)The financing constraint environment and earnings management level of enterprises play an interval effect on the relationship between enterprise financialization and enterprise value creation.The stronger the financing constraints,the more significant the "reservoir" motivation.Earnings management and financial "speculation and arbitrage" incentives are substituted.(3)affected by external macro environment and internal factors,each enterprise financialization best level differences,using a partial adjustment model can measure every enterprise of moderate value,when the enterprise actual financialization degree than those at ordinary times,the enterprise financial assets investment will produce extrusion effect to industrial development,to enhance enterprise value.(4)The negative impact of excessive financialization on enterprise value creation can be controlled by the level of internal governance and market competition environment.The main innovations of this thesis are as follows :(1)based on the interval effect of threshold variables on the relationship between financialization of real enterprises and value creation of enterprises,the influence of financing constraints and earnings management on financialization motivation of real enterprises is discussed,which enrichis the research on financialization motivation of real enterprises;(2)Using the local adjustment model to calculate the optimal level of enterprise financialization,it is proved that based on the measured value,the financialization of entity enterprises has a differentiated impact on enterprise value creation,which enhances the reliability of the measurement results;(3)Based on the results of empirical research,corresponding countermeasures are put forward to restrain enterprises from turning from "real" to "virtual" and to govern excessive financialization,which improves the application value of the research on the financialization of real enterprises.